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RHIM - Swing Trade Analysis with AI Signals

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Rating: 3.4

Last Updated Time : 05 May 26, 04:22 pm

📊 Swing Trade Rating: 3.4

Stock Code RHIM Market Cap 8,389 Cr. Current Price 406 ₹ High / Low 538 ₹
Stock P/E 43.4 Book Value 199 ₹ Dividend Yield 0.62 % ROCE 7.71 %
ROE 5.62 % Face Value 1.00 ₹ DMA 50 401 ₹ DMA 200 440 ₹
Chg in FII Hold -0.26 % Chg in DII Hold 0.68 % PAT Qtr 68.9 Cr. PAT Prev Qtr 41.3 Cr.
RSI 56.1 MACD 5.90 Volume 58,773 Avg Vol 1Wk 63,948
Low price 323 ₹ High price 538 ₹ PEG Ratio -7.46 Debt to equity 0.02
52w Index 38.5 % Qtr Profit Var 22.7 % EPS 9.35 ₹ Industry PE 37.5

RHIM shows moderate fundamentals with improving quarterly profits but weak efficiency metrics (ROCE 7.71%, ROE 5.62%). The stock trades near its 50 DMA (₹401) but below the 200 DMA (₹440), indicating short-term support but medium-term weakness. With a high P/E of 43.4 compared to industry average of 37.5, valuation looks stretched. Optimal entry would be around ₹390–₹400 on dips. If already holding, consider exiting near ₹430–₹440 to capture gains before resistance.

✅ Positive

  • Quarterly PAT improved from ₹41.3 Cr to ₹68.9 Cr (+22.7%).
  • Low debt-to-equity ratio (0.02) ensures financial stability.
  • DII holdings increased by 0.68%, showing domestic investor confidence.
  • RSI at 56.1 suggests neutral momentum, not overbought.

⚠️ Limitation

  • ROCE (7.71%) and ROE (5.62%) are relatively weak.
  • P/E of 43.4 is above industry average, indicating premium valuation.
  • PEG ratio of -7.46 suggests poor growth-adjusted valuation.
  • Stock trading below 200 DMA (₹440), showing medium-term weakness.

📰 Company Negative News

  • No major negative news reported, but weak efficiency ratios remain a concern.

🌟 Company Positive News

  • Quarterly profit growth of 22.7% highlights operational improvement.
  • Stable domestic institutional support (+0.68% DII holdings).

🏭 Industry

  • Industry P/E at 37.5, lower than RHIM’s 43.4, suggesting overvaluation.
  • Refractories sector benefits from steel and construction demand.

📌 Conclusion

RHIM is showing signs of recovery with improving profits, but weak efficiency ratios and high valuation limit upside. Best swing trade entry is around ₹390–₹400. If already holding, exit near ₹430–₹440 to secure gains before resistance.

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